Citigroup and Revlon lenders say three lenders are ready to settle, with the end in sight
Citigroup Inc Is close to getting back about $500 million it accidentally paid to 10 Revlon Inc lenders, with three on the verge of returning their pay-outs and others making “substantial progress” toward a resolution, a court filing shows.
Citigroup, as Revlon’s loan agent, had accidentally used its own money in August 2020 to prematurely pay off a $894 million loan owed by billionaire Ronald Perelman’s now-bankrupt cosmetics company.
Some recipients returned their pay-outs after realizing the mistake, which Citigroup blamed on human error, but the 10 lenders had refused, saying the bank paid what they were owed.
The potential settlement was discussed in a joint letter by lawyers for Citigroup and the lenders, which include hedge funds and investment funds, filed late Monday night in Manhattan federal court.
Following the earlier ruling, Citigroup had lowered previously reported profit to reflect $390 million of added legal expenses.
Last week, the lawyers said “material terms” of a potential settlement called for Citigroup to recoup its money and transfer some interest and amortization payments.
CITIGROUP TECHNICAL ANALYSIS DAILY CHART:
In the daily chart, Citigroup currently is trading in a down channel. Citigroup is currently trading below all SMA.
RSI is in the Selling zone which shows bearishness. And stochastic is suggesting a downtrend.
Citigroup’s immediate support level is at 45.31 & resistance level is at 45.72
HOW TO TRADE IN THIS WEEK
Citigroup is trading in a down channel, it will continue to trade downside until any trend reversal, so remain bearish on it.
